HF293 • 2026

A bill for an act exempting cash tips from the individual income tax, and including applicability provisions.

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: JACOBY
Last action: 2025-02-10
Official status: Introduced, referred to Ways and Means. H.J. 275 .
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act exempting cash tips from the individual income tax, and including applicability provisions.

What This Bill Does

A bill for an act exempting cash tips from the individual income tax, and including applicability provisions.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2025-02-10 Iowa Legislature
Introduced, referred to Ways and Means. H.J. 275 .

Official Summary Text

A bill for an act exempting cash tips from the individual income tax, and including applicability provisions.

Current Bill Text

Read the full stored bill text

House

File

293

-

Introduced

HOUSE

FILE

293

BY

JACOBY

A

BILL

FOR

An

Act

exempting

cash

tips

from

the

individual

income

tax,

and

1

including

applicability

provisions.

2

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

3

TLSB

1917YH

(1)

91

jm/jh

H.F.

293

Section

1.

Section

422.7,

Code

2025,

is

amended

by

adding

1

the

following

new

subsection:

2

NEW

SUBSECTION

.

45.

Subtract,

to

the

extent

included,

3

the

amount

of

cash

tips

that

were

received

and

are

included

4

on

statements

furnished

to

an

employer

as

required

by

section

5

6053(a)

of

the

Internal

Revenue

Code.

6

Sec.

2.

APPLICABILITY.

This

Act

applies

to

tax

years

7

beginning

on

or

after

January

1,

2026.

8

EXPLANATION

9

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

10

the

explanation’s

substance

by

the

members

of

the

general

assembly.

11

This

bill

excludes

from

the

individual

income

tax

the

amount

12

of

cash

tips

received

and

included

on

statements

furnished

to

13

an

employer

as

required

by

section

6053(a)

of

the

Internal

14

Revenue

Code.

15

The

bill

applies

to

tax

years

beginning

on

or

after

January

16

1,

2026.

17

-1-

LSB

1917YH

(1)

91

jm/jh

1/

1